Consider the following data for two risk factor ( 1 and 2) and two securities (J and K) (Mark 4)
Bk2= 2.25
Biz = 1.40
Bk1= 1.60
B₁ = 0.80
入
A = 0.06
A₁ = 0.02
A 2=0.04
a) Compute the expected returns for both securities.